Wednesday, May 23, 2007

Dubai Ventures buys 5% in Bharat Hotels

Dubai Ventures, the private equity arm of Dubai Investment Group, has picked up 5% stake in Delhi-based Bharat Hotels for Rs 160 crore. The deal values the company at Rs 3,200 crore. Post-deal, the promoters’ stake— the Suri family and associates — will come down to 92%.

The hospitality chain plans to raise up to Rs 1,000 crore through internal accruals, debt and private equity placements to fund its expansion programme. The expansion involves six properties under construction, while talks are on for setting up luxury hotels in Hyderabad, Amritsar, Chennai, Pune and Gulmarg.

The group had recently announced its international foray through a JV with Dubai-based Nakheel Group. Its Dubai property, The Grand Fort Dubai, is set to open in 2009. The group’s Kolkata property, the 165-year-old The Grand Great Eastern, is currently under renovation.

Read more in The Economic Times article.

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